Extendible operating lease: Although an EOL resembles a finance lease, the lessee generally has the option to terminate the lease at specified points (e.g. every three years); thus, the lease can also be conceptualized as an operating lease. Whether EOLs qualify as operating leases depends on the timing of the termination right and the accounting rules applicable to the companies.
The Gulfstream G650ER, which retails for $70.15 million fully outfitted, can travel 7,500 nautical miles/13,890 kilometers at Mach 0.85. When flying even faster at Mach 0.90, it can carry eight passengers 6,400 nm/11,853 km. Hodge adds that it is important to know the general travel mission when determining the size of the plane. If certain airports are used, a broker can help buyers understand if a plane can regularly take off and land there with a full payload. Gulfstream
Convenience - There are over 5,000 airports in the US that private planes can use (vs 500 airports for larger commercial aircraft). This means you can often land closer to your true destination. In the summer of 2006 the ban on liquids caused all sorts of inconveniences for people flying commercially, but private flyers avoided all this. Private planes also mean that you can travel with your special belongings such as instruments, sports gear, product samples or bring your pet in the cabin.
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JetSmarter, around since 2013, is an example of a player in the private aviation space selling shared flights. The company operates on a membership model: Fliers pay a minimum of $15,000 a year and book seats on already scheduled flights through the JetSmarter app, which lists more than 150 domestic and international trips a day. Trips under three hours are included in the cost of the membership while longer ones are an average of $300 a person, according to Sergey Petrossov, the company’s chief executive officer; most flights have an average of eight to 10 passengers.